The Real Deal New York

It’s baaack: City Council proposes new “mansion tax”

The City Council is bringing back Mayor Bill de Blasio’s once-defeated “mansion tax” proposal.

The Council included a potential new tax on high-value residential property deals in its response to the mayor’s 2017 budget proposal.

Under the plans, apartment buys over $1.75 million would be taxed at 1 percent, and those worth over $5 million at 1.5 percent. The Council also proposed a new tax on carried interest, the method by which many private equity managers are compensation, the Wall Street Journal reported.

All told, the lawmakers estimated the taxes would bring in around $410 million next year. The Council earmarked those funds for social programs for immigrants, women and youth. In total, the suggested budget calls for $790 million in new spending.